Value Chain Analysis Model

C) Analysis of how the marketing function ensures the needs of this key type of customer are met by the provision of insurance products and/or services.

i. Customer Service

One way the marketing function ensures the needs of SMEs are met is by the provision of quality customer service.

The Financial Conduct Authority (FCA) Handbook recognizes the importance of customer service and states that: 'A firm must pay due regard to the interests of its customer and treat him fairly' (FCA Handbook, MCOB 2.6A 25, 2009). This requires that KEK demonstrates the six outcomes for Treating Customers Fairly (TCF) throughout its operations in areas including promotions, advice, customer complaints and claims handling.

Customer service includes contacting,

Value chain analysis also allows KEK to identify customer service strengths and weaknesses and allows it to exploit their strengths and improve on their weaknesses.

d) Culture

Culture is an internal benchmark that measures success and highlights any variations from established standards that are not acceptable. KEK's culture includes strict adherence to the chain of command and the implementation of 'customer is always right' or Treating Customers Fairly (TCF) culture. According to Fill, “culture is learned and acquired, it is not instinctive.” (Fill, 2009)

e) Branding

Competitive differentiation through branding makes KEK's services unique and attractive to the SMEs. Through customer experience management, KEK infuses the brand experience to consistently deliver a superior experience across all points of customer interaction and deliver value through quality of service, availability, reliability, communication, image and price.

f) Customer Relationship Management

Marketing must work with HR to further improve KEK's profitability by ensuring that all employees have the appropriate values and skills through effective training and regular competency assessments. All members of the Marketing function as well as the other functions must also be encouraged to undertake personal development courses relevant to their roles and be financially supported by KEK. High competency levels attracts businesses and increases efficiency aiding profitability.

v. A strategy to improve profitability can include establishing new distribution channels such as additional locations within West Africa to reach a wider geographical market for SME businesses.

vi. KEK can also increase profitability by increasing the price or commission rates and fees from SME services whiles all other elements remain unaltered. On the other hand, a reduction in the price or fee levels can lead to higher sales volumes, thereby increasing market share or market penetration for the SMEs. We recommend that marketing and finance work closely together to make pricing decisions. Marketing also needs to consider the pricing strategies of its competitors in order to be more effective and profitable.

E)